How do you view the bid/ask spread on a chart?

Discussion in 'Technical Analysis' started by freedomshark, Aug 19, 2016.

  1. I was wondering if it is possible to observe changes to the bid/ask spread on any time frame chart. What does it look like when the spread widens and narrows? Since charts print 1. only trades 2. in hindsight the highs and lows may hide what is happening in real-time?

    Many thanks in advance.

    FS
     
  2. wrbtrader

    wrbtrader

    Yes, there are companies that markets software that show bid/ask spread on any time frame charts although I suspect they don't use the word "any" in their marketing. For example, they probably have the typical chart time frames but not something like 7min chart. :D

    Just use Google search to find them.

    Yet, in the early 2000 there was a company that literally allowed "any" time frame but they went out of business in less than a year.
     
  3. wartrace

    wartrace

    Possible? I don't know. The best place to be looking for the spread is on a depth of market (aka orderbook). I don't see how it would be possible to observe it on a chart. (even a footprint chart)
     
  4. MACD

    MACD

    Get a free trial of Market Delta which has a link on the EliteTrader home page.
     
  5. i960

    i960

    Sierra has the ability to record market depth data these days and underlay it on the chart.
     
  6. garachen

    garachen

    It's worth looking at. I found a lot of good stuff that way. IB can do it
     
  7. As @wartrace points out, adding a DOM to the chart helps. With the TT platform, you may attach MD Trader to a chart to create a widget group so bid/ask is very visible. You may enter orders on MD Trader and your orders, and fills, will be shown on the chart. We're also going to release a new trading on the chart feature by the end of the month and this will include a narrow bid/ask indicator on the chart which may be used for order entry and order management. domchart.png